Provincial Liberals have long way to go to reach auto insurance-rate reduction target

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Auto insurance rates have inched down a notch in Ontario, though the Liberal government is still far from its self-imposed target of an average 15% reduction.

The Liberals promised in 2013 to cut auto insurance premiums an average of 15% by August 2015, but after that deadline came and went, Premier Kathleen Wynne later admitted that was what she called a “stretch goal.”

Approved rates in the fourth quarter of 2016 decreased on average by 0.14%, according to the Financial Services Commission of Ontario.

That puts the average decrease since August 2013 at about 8.3%, or a little over halfway to the government’s goal.

Finance Minister Charles Sousa has said the government still wants to see rates cut by an average of 15%, though there’s no longer a deadline attached to the goal.

The promise in 2013 came as part of a deal to get NDP support for that year’s budget when the Liberals were still a minority government.

The government has lowered the maximum interest rate that an insurer can charge for monthly auto premium payments and prohibited minor at-fault accidents from boosting premiums. As well, it has appointed a special adviser to look at ways to lower costs and further reduce rates.